INTERNATIONAL TRADE 147 
at what rates they will exchange with one 
another. The solution of the problem is 
afforded by the statement that they will 
exchange in proportion to the relative demands 
for them. Of two things, the supplies of 
which are equal, the one for which there is 
the greatest demand will be the one to realise 
the highest price. 
Now, the value of things having been settled 
in this way, it is sure to be found that the 
agents producing some of them are more 
richly rewarded than the agents producing 
others. The producers of the things that sell 
best have larger net receipts to share out 
than the producers of the things that sell 
indifferently well. Consequently, the industries 
furnishing the former articles will prove 
exceptionally attractive to such labour, 
capital, and enterprise as is seeking occupation 
in the community, and such as can be shifted 
from their present uses ; and at the same 
time the relatively meagre earnings of the 
factors engaged in the industries producing 
the latter articles will exercise an expulsive 
force upon such of these factors as can be 
transferred to other purposes, and repel the 
supplies of productive power which would 
otherwise have been absorbed by the less 
successful industries. As a result of the crea-